LAST CUT

A quality assurance checklist
Can help improve your bottom line

by David J. Kudlock
Vice President
Tri-Tech Services, Inc.
Pittsburgh, PA

In today's dynamic business environment, the need for companies to maintain their competitive edge is more critical than ever. But often lost among the announcements of new global trade agreements and the introductions of the latest technologies is the most fundamental element vital to a company's success: quality of product or service.

While thousands of manufacturers have successfully instituted quality assurance programs and are reaping the benefits, many continue to defer. The most common reason for not implementing a quality assurance program is the belief that a company's operations are already running efficiently and a formal plan is nothing more than expensive window-dressing.

In reality, the reverse is true. Decision-makers concerned about the cost of a quality assurance system often underestimate how important quality is to the bottom line. By adopting a formal program, a company can expect to increase its product quality and profit margin, decrease its operating costs, and improve its customer satisfaction. In short, the savings realized from a quality plan far exceed its implementation costs.

Here's a simple checklist that any manufacturer can use to see if it could benefit from a formal quality assurance program:

Are your scrap, repair, or rework rates above your industry average?
Do you experience unscheduled equipment downtime?
Do front-line supervisors spend more time putting out fires and answering routine, repetitive questions than performing their assigned tasks?
Are you operating at less than 100% capability or capacity?
Do assembly, installation, or delivery parameters exceed estimates or projections?
Are you carrying excessive inventory?
Is labor or material waste excessive?
Are you processing significant levels of customer returns, repairs, or complaints?
Do you have high employee turnover?
Do you frequently deal with mid-shipments or improperly completed orders and their consequences?
Does it seem that workers "just don't seem to get it right"?
Do expenditures for inspections, testing, or audits seem to exceed their worth?
Do you really know what is important to your customers?
Do your vendors experience difficulty meeting your requirements?
Is there frequent travel to vendors and/or customers to resolve problems?
Are there incongruities between sales com mitments and your internal capabilities?

If you answer yes to more than two of the above, your company is at a distinct competitive disadvantage. A properly implemented quality assurance plan can help you level the playing field.

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